Ligado Networks has recently filed a $39 billion lawsuit against the Federal Government of the United States, naming the Department of Defense (DoD) and the Commerce Department as defendants. The complaint alleges that these institutions took “unlawful actions” to seize the firm’s L-band spectrum granted by the Federal Communications Commission (FCC) in 2020 without compensation, following objections from the DoD and Commerce.
The case is complex, containing numerous layers of bankruptcy, restructuring, and allegations dating back a number of years. First reported by The Wall Street Journal, this lawsuit represents another chapter in an ongoing saga involving allegations of malfeasance, numerous lawsuits, government-company disputes over the results of scientific studies, and high-level congressional politics.
The legal action could have major implications for the telecommunications industry, as it comes at a time when Ligado is contending with roughly $4 billion in loans and bonds coming due. The current case hinges on a controversial 2020 FCC decision which some have likened to a “rezoning” of spectrum originally allocated to satellite users for a proposed 5G terrestrial cell phone network.
The lawsuit filed in the United States Court of Federal Claims alleges that the Pentagon effectively took Ligado’s spectrum for its own purposes, operating undisclosed systems that depend on the spectrum without proper compensation to Ligado. The lawsuit further alleges that DoD and Commerce misled Congress, orchestrated a public smear campaign, and threatened Ligado’s business partners, actions that have allegedly led to the government illegally seizing Ligado’s property.
The lawsuit also references the 2021 National Defense Authorization Act. This act prohibits the Defense Department from contracting with any entity engaged in commercial terrestrial operations within Ligado’s frequency bands without a waiver from the Secretary of Defense confirming that there would be no harmful interference with GPS receivers. The Act also required a study by the National Academies of Sciences, Engineering, and Medicine on potential interference impacts.
Telecommunications industry analyst, Tim Farrar, predicts that Ligado could potentially face bankruptcy and was likely to sue the federal government in an effort to recoup some of its forecasted losses. The case remains complex, with Farrar noting that it would be a “tricky” case for Ligado to win, considering the company’s decision not to fully cooperate with the National Telecommunications and Information Administration (NTIA) and “the GPS industry” in finding mutual solutions.
Proponents of Ligado, however, paint a different picture. They assert that Ligado at its own cost developed solutions to guarantee its services would not interfere with signals, including those in the GPS spectrum, and made considerable concessions to overcome technical issues. Whether these assertions will hold legal weight remains to be seen.